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July 25, 2008

Reports: AT&T Fighting Sprint, Clearwire Merger

By Michael Dinan, TMCnet Editor

AT&T (News - Alert) reportedly has asked the federal agency that oversees communications to prevent two competitors from joining forces.



 
According to FierceWireless, an online publication that covers the wireless industry, the operator argued to the Federal Communications Commission that a merger between Clearwire and Sprint Nextel eventually would use spectrum leased from cities, schools and nonprofit organizations.
 
In its filing, according to the publication, AT&T – a company that boasts the nation’s largest subscriber base – says that Clearwire and Sprint “openly state that they intend to compete with other national wireless providers – including AT&T – yet they fail to make the required showings necessary for the commission’s review.”
 
The filing follows an announcement earlier this year from Clearwire and Sprint that they’d combine their WiMax businesses with the help of $3.2 billion from Intel (News - Alert), Google, Comcast, Time Warner and Bright House.
 
According to FierceWireless (News - Alert), AT&T claimed that when it bought Dobson Communications last year, the FCC took into account spectrum AT&T had not yet accessed.
 
The AT&T filing followed revelations two months ago that Spring and Clearwire were seeking to create the new WiMax company with a $3.2 billion investment from Intel, Google, Comcast, Time Warner (News - Alert) Cable, Bright House Networks and Trilogy Equity Partners.
 
Under the deal, the new company would be named Clearwire, and would include Sprint’s Xohm unit, officials say.
 
Sprint would contribute its 2.5 GHz spectrum to the new Clearwire in exchange for an ownership stake in the new company, FierceWireless says.
 
Also, “Clearwire CEO Ben Wolff will be the CEO of the new Clearwire,” the publication says. “Barry West (News - Alert), Sprint’s CTO and Xohm business unit leader will be the president. The new company will include staff from both the existing Clearwire and Sprint Xohm business unit. Headquarters will be in Kirkland (Washington), with significant presence and R&D in Herndon (Virginia).”

If the deal is completed, Sprint wouldn’t be involved in Clearwire’s daily operations, but would have input as a majority shareholder, while Intel would collaborate with manufacturers to embed WiMax chips into devices such as laptops.
 
Michael Dinan is a TMCNet Editor. To read more of his articles, please visit his columnist page.
 
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is The Compelling ROI Benefits of Contact Center Quality and Performance Management Technologies, brought to you by Voice Print International.

(source: http://mobile-voip.tmcnet.com/topics/mobile-communications/articles/35238-reports-att-fighting-sprint-clearwire-merger.htm)

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